Levels to watch: FTSE 100, DAX and S&P 500

FTSE 100 looks to recover 7600

The FTSE 100 broke below the key 7600 level yesterday, but is attempting to recover this area and move higher.

With momentum now oversold on the daily chart, and breadth very weak (usually a sign of a buying opportunity), then a recovery of 7600 would point towards another challenge of the downtrend from the month highs. As of yesterday, however, it will require a close above the recent swing high of 7709 to confirm that the buyers are back in charge.

DAX finds support after fall

The price for DAX fell back to the 50-day simple moving average (SMA) yesterday, and is bouncing from here today.

If it continues to hold the 13,200 area then the possibility of a bounce increases, with 13,427, 13,533 and 13,601 in view as possible targets. Below 13,170, the lows of Tuesday’s session, the 13,095 and 12,954 zones, are potential support.

S&P 500 takes a dip, for a change

We saw the first meaningful down move here for S&P 500, with the price dropping below the 50-period SMA on the four-hour chart (2836).

A recovery back above this would suggest a push back to 2880, and potential new record highs. If the bounce falters and the price falls below yesterday’s lows of 2816, then 2807, 2768 and then 2759 come into play.

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